Sheffield software company IntelliAM completes £5m acquisition of 53 North after being added to Aquis

South Yorkshire software company IntelliAM has completed the acquisition of engineering group 53 North, a day after being listed on the Aquis Stock Exchange Growth Market.

IntelliAM, based in Dinnington, Sheffield, specialises in AI and machine learning for the manufacturing industry and this week the company began trading on the AQSE, raising £5.08m in an offering. IntelliAM was founded to use AI models to improve the operational efficiency of its clients, with a vision to harness the power of AI through machine learning and revolutionise asset management in manufacturing.

The company collects vast amounts of data from machines, processes and systems, including IoT devices, and then delivers instructions via the IntelliAM platform to improve customer operations. The company is led by CEO Tom Clayton, who founded Sheffield maintenance engineering and asset management company 3 Degrees North Engineering Limited, trading as 53 North, and chairman David Richards, former CEO of WANdisco and managing partner of Yorkshire AI Labs.

In March, it signed a preliminary term sheet to acquire 53 North, saying it planned to complete the transaction immediately upon admission to the AQSE. A stock exchange filing announced the completion of the acquisition of 53 North. It follows an agreement signed last week in which the company agreed to buy the entire issued share capital of 53 North for £5.187m.

The agreement provides for 50% to be paid in shares – around 2.7 million new ordinary shares have already been issued to the founders – and the remaining 50% of the purchase price, £2.59 million, was paid in cash.

After going to market, the company said, “Executives believe the IntelliAM platform enables fast, accurate, and secure data capture, enabling customers to gain valuable insights that translate into higher revenues and lower costs through increased productivity, reliability, energy savings, and an improved supply chain.”

It said the gross proceeds from the £5.1m fundraising will be used to cover listing fees and expenses and to pay an initial cash consideration for 53 North. The remaining amount of approximately £3.3m will be used to cover overheads and running costs, continue research and development to accelerate platform and software development, and hire additional key staff.

Meanwhile, 53 North is a provider of asset care and management strategy consultancy to manufacturers, particularly in the FMCG sector. The business has been trading for over 11 years and in 2016 achieved a turnover of £1m after winning contracts with two major FMCG companies. Since then, sales have more than doubled and its clients include some of the world’s top FMCG companies.

IntelliAM said: “53 North has established relationships with some of the world’s largest food and beverage companies, as well as established brands in the pharmaceutical, materials and industrial manufacturing industries. Executives believe the IntelliAM platform can deliver increased productivity and significant cost savings for these customers, and initial proof-of-value sites are already delivering very positive results.”